How Many Fees Are Needed for One Appraisal Order?
After reflecting on 2023, from the position as an appraiser, experiencing the changes in volume of orders, the compensation being offered to the appraiser, the amount of waivers being given so no appraisal was required, and the roll out of desk top appraisals allowed to be performed by NON-licensed appraisers has many of us rethinking the stability and longevity of our cherished industry. I use the word cherished because by and large most full-time knowledgeable appraisers love what they do. The take pride in producing excellent well written and articulate valuations for their Clients. They are timely in their deliveries, and they respond immediately for revisions and corrections, etc.
Being beaten up about a fee increase request, new higher technology fees, or losing out to an order in a ridiculous bidding war and learning the AMC made more money than the appraiser on an order, or even having an order cancelled because someone else offered to take less compensation, are only a few of the issues the appraisal industry is facing. It’s no wonder that an appraiser is left wondering why we are being seemingly targeted on all fronts. Very few groups of professionals are going through what we have endured over the years. We’ve gone from valuation pressures from the lending officers pre-2007 which led to a meltdown, to the post 2007-2008 years where AMC’s became the compliant answer for HVCC and USPAP guidelines. Only to have the AMC’s rule when it comes to charging borrowers exorbitant fees which pay for their leadership partners made up of senior vice presidents, executive vice presidents and all kinds of corporate officials who have little to nothing to do with the day to day running of an AMC. Not to mention some other parasite companies who feed on charging the appraiser another technology fee which is on top of the current software fee they already are using. It begs the questions “how many fees are needed for 1 order”?
In reading the overwhelming number of newsletters, magazines, transition products and services NO ONE has ever taken the time to look at how to make the appraisal portion of the process a better one, with added speed, from a top-level appraiser who is compensated properly and the overall cost of the appraisal. It’s almost a conversation no one wants to have. And especially the senior and executive vice presidents all over the country earning on the backs of appraisers and borrowers. It has gone unchecked far too long!
The Private Asset & Management Group LLC (PAM), has wrestled with this. And in response to what we have experienced, read about, spoken about with lenders and appraisers, we have tried to face this challenge head on. We have launched a new platform we have named PAM Plus. It allows lenders (retail and wholesale) to have a FREE in-house appraisal desk/division, it allows the lender to use their OWN roster of appraisers in every geographic area they lend in, it will significantly lower the cost of the appraisal by 25%-40% on day one, and it comes with absolutely “NO” cost to the lender. And it is compliant in 50 states. We believe this is far and away the most significant change that will work for the betterment of all parties since 2007. This is the future of the appraisal process, and we welcome your feedback, questions and comments.